་ ་་ 12. 13. 14. 15. 16. 17. 18. 19. Inc. to be Receiver for BTCB (see exhibited herewith notice dated 15th February, 2001 marked “CB 9"). The Honourable Minister for Finance by Notice of Intention to Revoke Offshore Banking Licence dated the 15th February, 2001, notified BTCB of his intention to revoke the Offshore Banking Licence granted to BTCB on the 27th March, 1997. (see Notice herewith exhibited and marked "CB 10"). On the 15th February, 2001, the business of the Plaintiff BTCB was in effect seized by the said Price WaterHouseCoopers (W.I.) Inc. and persons under their authority direction and control. They have taken over complete possession of the premises and all records including confidential records of the customers' dealings. I fear that this seizure has caused and will continue to cause the Plaintiff BTCB irreparable harm, loss and damage, and, unless restrained, BTCB's imminent destruction. The 1 Defendant has refused to accept any new deposits into any BTCB accounts. I discovered yesterday that the said 1 Defendant has issued letters to each of BTCB's correspondent bank(s )stating that the Ministry of Finance has issued a Notice of Intent To Revoke BTCB's License and has appointed them as Receiver and by the said letters are instructing such Banks to close BTCB's Account(s) and transfer all balances to a Trust Account at the National Commercial Bank. The 1st Defendant has informed BTCB creditors and depositors of the above actions. I fear that such actions on the part of the 1" Defendant will cause the refusal of significant fund transfers which are earmarked for the Plaintiff through one of its correspondent banks of the Plaintiff, the receipt of which funds would solve the liquidity problems of the Plaintiff. The 1st Defendant has written to the Plaintiff's debtors demanding immediate payment of their debts and stating in the said correspondence that its "licence to operate will be revoked", contrary to the law. The 1st Defendant has impounded an airplane leased by BTCB that is the property of a third party unrelated to BTCB. 20. The 1st Defendant has seized certain assets of BTCB that are essential to the ordinary course of business, including a vehicle made available to the officers of BTCB. 21. The 1st Defendant has changed all locks and combinations at BTCB and retain all the keys and combinations, under their custody and control, requiring that the ordinary course of business can only be conducted at their convenience. 22. 23. 24. 25. 26. 27. 28. 29. 30. The 1st Defendant are inspecting and accessing all files at BTCB including the individual client international business company files that are stored at BTCB and held for those companies for which International Corporate Services Ltd. and affiliate of BTCB serves as Director Designee. Communications in and out of BTCB have been severely limited now to only two (2) phone lines and one (1) fax line as opposed to the previous eight (8) phone lines and two (2) fax lines. Even more seriously, the discontinued lines include the dedicated phone and computer lines that the U.S. Treasury / Federal Reserve appointed Entities Instructed BTCB to install, and the dedicated SWIFT (Interbank communication) line that permits secure communications between BTCB and its correspondent and other world banks and which precludes pre-advise of the deposits and fees expected into BTCB. The 1st Defendant's actions have caused Cable & Wireless to disconnect all phone lines at my residence, including the dedicated lines and mobile phone similarly directed by those Entities because the conduct of those aspects of the business of BTCB require access to me at least seventeen hours a day, seven days a week. The actions by the 1st Defendant and the Ministry of Finance have lent credence to the spurious and egregious half-truth, false statements, accusations and innuendos recently reported in a U.S. Senate Minority Staff Committee Report, in spite of BTCB's written and publicized Response. I have been informed and verily believe that the Honourable I have been advised by Counsel and verily believe that the said Notices of the Honourable Minister for Finance were rather precipitate and dehors the law and have caused the Plaintiff BTCB severe prejudice. I have been further advised by Counsel and verily believe that the said Notices of the Honourable Minister for Finance have contravened the “audi alterem partem" rule of Natural Justice and are unlawful. The Notice of the Appointment of the 1* Defendant as Receiver of BTCB which is exhibited hereto and marked "CB 10" does not identify the ground for the appointment and BTCB has never been served with any written document which serves the basis of the Minister's decision or to which BTCB may have had an opportunity to respond, nor has BTCB ever been told the reason for such appointment. The Plaintiff BTCB is in the process of submitting its written statement of objection to the said Notice of Intention to Revoke 31. 32. 33. Offshore Banking Licence to the Honourable Minister for Finance. I am confident that, given the reorganization plan and the pending receipt of the funds as referred to herein, the directors of the bank are in a position to effectively manage and operate the bank in the interest of its shareholders and depositors, subject to any conditions which the Court may impose. I fear that if the Defendants were allowed to continue with their actions without the intervention of the Court the shareholders and depositors will suffer irreparable loss. In the premises, the Plaintiff humbly prays that in pursuance and by virtue of the powers vested in this Honourable Court, that this Honourable Court will grant the relief sought in the Summons herein both permanently and by interim order as well as such further or other relief as may be just. In the Matter of an Application for the Revocation of the Appointment of the Receiver I, MARCUS A. WIDE, of the Regional Municipality of Halifax, Province of Nova Scotia, Canada, Financial Specialist, make oath and say as follows: 1. 2. That I am a Director of PricewaterhouseCoopers (W.I.) Inc. ("PWC") and I am authorized to swear this Affidavit on behalf of PWC. I am a licensed Trustee in bankruptcy, a certified insolvency practitioner and have 26 years experience in the area of corporate insolvency, private receiverships, court appointed -2 3. 4. 5. 6. 7. 8. receiver and liquidator acting as agent of courts in Canada and the Caribbean and providing insolvency and financial restructuring advice generally to clients. PWC was appointed by the Honourable Ambrose George, Minister for Finance and Economic Trade & Commerce Bank Ltd. ("BTCB") on February 15, 2000 pursuant to Section 34 of David Boyd of Halifax aforesaid is a Manager of PWC and I have reviewed the Affidavit sworn by him under date February 27, 2001 ("Boyd Affidavit") and filed in the within and confirm the matters deposed in as if such Affidavit was sworn by me. PWC was advised by Bernard Wiltshire, the Honourable Attorney General of the under date February 23, 2001 made on the application of the Plaintiff was stayed by this Since the date of the Boyd Affidavit, PWC has continued with its exclusive power of During the continued course of such investigation and review, PWC cannot substantiate any of the facts as to the solvency and the good business prospects of BTCB as is alleged by Charles Brazie and contained in his Affidavit ("Brazie Affidavit") filed with this Honourable Court and sworn the 23 day of February, 2001. I have reviewed the financial statements of BTCB for the year 2000 and filed as "CB2" of the · Assets recorded thereon are without reference to the corresponding liabilities. Assets are shown in these financial statements for which BTCB does not hold title, but are shown as if owned by BTCB. Other assets shown thereon are without value under generally accepted accounting principles. These financial statement are at best grossly misrepresentative of the true financial affairs of BTCB as at their date and are not prepared under generally accepted accounting principles. HADOCSOPEN\PPHMLIB\RRAFUSE\18V9011.DOC |